1. The Field of the Invention
The present invention relates to the sale of, distributing, and managing petroleum products and, more particularly, to retail sales and dispensing fuel management system.
2. The Relevant Technology
At the majority of retail locations that sell petroleum products an attendant is required. The attendant, in addition to accepting payment for the products sold, supervises the use of the pumps and assures that each customer makes payment for fuel pumped. Although most retail locations offer pay-at-the-pump facilities, the option to pay inside is also typically available. Because of the option to pay either inside or at the pump an attendant is required to monitor the pump island and to assure that all customers pay for fuel before leaving the premises. To compensate for attendant costs, retailers typically pass on the cost of attendant wages and benefits to consumers by increasing the price of the fuel. Thus attendant costs are paid for by the consumers who purchase fuel, whether they pay the attendant inside or at the pump.
There are typically various payment methods used to pay for fuel. For example, most retail locations that sell fuel accept cash, credit cards, and debit cards as valid forms of payment. At least some retail locations also accept checks as a valid form of payment. As stated, in most cases payment can be made either to a sales attendant or at the pump. In most retail locations, a sales attendant can appropriately process any acceptable form of payment including cash, check, credit card, or debit card.
Unfortunately, the acceptance of checks as a valid form of payment subjects retailers to returned check losses. Thus, retailers typically factor some amount of returned check losses into the cost of doing business. To compensate for the cost of returned checks, retail locations typically pass these costs on to consumers by increasing the price of the gasoline they sell. Thus, at least to some extent, returned check losses are paid for by any consumer who purchases fuel, even consumers that pay by cash, credit card, or debit card.
In the case of payment made using a credit or debit card inside a retail store, a sales attendant swipes the card (through some interface) as a form of payment. Information is read off of the card's magnetic strip and submitted to a card authorization network. When the card is a debit card, the consumer may also enter a PIN (through the interface) at the pump. If the swiped card is approved the transaction can be completed.
However, submitting payment to a sales attendant (whether using cash, check, credit card, or debit card) typically requires a consumer to leave their vehicle unattended for some amount of time (e.g., to walk inside a structure some distance from the pumps). This poses a security risk to the vehicle (which depending on location may be more or less substantial), an inconvenience to the customer, and in inclement weather exposure that may be detrimental to the customer.
Pay at the pump fuel dispensing provides consumers with the convenience of not having to enter a store and leave their vehicle unattended to pay for dispensed fuel. A consumer swipes a debit or credit card at the pump (through some interface) as a form of payment. Information is read off of the card's magnetic strip and submitted to a card authorization network. When the card is a debit card, the consumer may also enter a PIN (through the interface) at the pump. If the swiped card is approved, the consumer can then manually activate the pump (e.g., select grade and remove fuel dispensing nozzle) and dispense fuel into their vehicle.
Although the use of a credit or debit card eliminates the risk of bad check losses, there is typically some fee (e.g., including card authorization network costs and other costs) associated with card acceptance (either when paying a sales attendant or when paying at the pump). Retail locations typically pass card fees on to consumers by increasing the price of the fuel they sell to compensate for the card fees. Thus, at least to some extent, card fees are paid for by any consumer who purchases gasoline, even consumers that pay in cash or use a check.
Further, card fees are assessed each time the card is used. Thus each time a consumer uses a credit or debit card to purchase fuel (either at the pump or checkout counter), a card fee is accessed. Unfortunately, most retail locations only accept credit cards and debit cards at the pump and typically have no mechanism for accepting cash or other forms of payment at the pump. Nonetheless, due in large part to convenience, consumers frequently use credit cards and debit cards to pay at the pump as opposed to submitting payment to a sales attendant.
Credit/debit card purchases can under some circumstances be charged back to retailers. When a chargeback occurs, the retailer is liable for the entire amount of the purchase, a cost that is also usually passed on to consumers in the form of higher fuel prices.
Fuel payments made in cash eliminates the risk of returned checks and eliminates credit and debit card fees and charge backs. However, considerable expense is incurred by retailers in handling cash including for example attendant or cashier costs, inaccuracies in giving back change, safe and related security costs, the cost of taking cash to the bank, and theft loses. These expenses, regularly incurred by retailers, are passed on to consumers in the form of higher fuel prices.
Further, regardless of selected payment method, general consumers are typically limited to purchasing fuel through “tank-at-a-time” transactions. Thus, virtually every consumer fuel purchase results in some cost to the retailer in addition to the cost of the purchases fuel.
Additionally, there is typically no efficient way for a consumer to manage and keep records of all their fuel purchases. Depending on the form of payment some recordkeeping devices may be available, such as, for example, bank statements and credit card invoices. However, no single recordkeeping device is available to customers who use multiple forms of payment at different times such as, for example, cash, checks, and credit/debit cards. Some petroleum company credit cards and fleet cards provide record keeping services and invoices but require a consumer to make all fuel purchases using the card. Further, the administrative cost of compiling and mailing invoices is passed on to retailers usually in the form of higher fuel prices charged by the petroleum company. The higher fuel prices are then passed by the retailer on to consumers.
Accordingly, as a result of present technology and customary methods of payment for fuel purchases, all consumers are required to pay more for fuel, since retail locations typically recoup attendant costs, bad check losses, credit/debit card fees and chargebacks, cash handling costs, and oil company credit card/fleet card costs by increasing the price of fuel. Further, typical fuel payment mechanisms do not provide consumers who purchase fuel using multiple payment methods the means to track purchases, establish fuel budgets, and manage funds used for the purchase of fuel. Accordingly, what would be advantageous are systems, methods, computer program products, that provide pay-at-the-pump convenience, reduce the monetary overhead associated with fuel purchases, and consolidate fuel purchasing information.